Clinging to the Punta Tragara, this gorgeous hotel has a hold-your-breath perch directly over the rocks of I Faraglioni. Originally a villa visited by Churchill and Eisenhower, its exterior was renovated by Le Corbusier in traditional Capri style. Baronial fireplaces, gilded antiques, and travertine marble set the style in the main salons, while guest rooms—no two are alike—are sumptuous. The garden area has two beautiful saltwater pools and an arbor-covered restaurant, La Bussola, which might be the prettiest spot on the island. To top it off, the staff seems to have been sent to the finest finishing schools. Pros: Unbelievable views, good location for coastal walks. Cons: Room rates have skyrocketed, a 15-minute walk to town.
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